Department store chain Macy’s announced Wednesday that it has ended a nearly two-month proxy battle with Ark House Management by adding two activist investor candidates to its board of directors.
The company also said it continues to engage in dialogue with Arkhouse and Brigade Capital Management regarding their revised acquisition proposal.
Ark House and Brigade in March upped their offer to acquire Macy’s shares they don’t already own for $24 a share, valuing the company at $6.6 billion, after the company rejected a bid it made in December. It became.
Subsequently, Ark House, which owns 4.4% of Macy’s shares, nominated nine director candidates to the board of directors in February, sparking a proxy battle.
Arkhouse announced on Wednesday that it has withdrawn its remaining director nominations, following the appointment of Richard Clarke and Richard Markey as independent directors.
“This eliminates the possibility of a proxy fight, which would have been a very costly and distracting issue, and perhaps Ark House would buy the entire company,” said Morningstar analyst David Swartz. “They wouldn’t have actually wanted that because they’re saying,” he said.
Macy’s said Mr. Clark and Mr. Markey will join the board’s finance committee, which will oversee the evaluation of proposals from Arkhouse and Brigade, in addition to its existing responsibilities.
“Our buyer group has begun undergoing due diligence to advance discussions on a potential transaction to acquire the company,” Ark House said in a statement.
Since its first bid in December, Macy’s has cut 2,350 jobs and in late February announced a restructuring plan to close about 150 stores by 2026.
The department store chain is facing weak demand due to increased competition from online retailers and declining relevance among younger shoppers.
Macy’s board of directors will consist of 15 directors. The company’s shares rose about 1% on Wednesday.
